What is the annual sales range that defines an ERAC Account for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
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There are certain prospective client accounts that you must refer to us (each, an "ERA Threshold Account") or our affiliate ERAC (an "ERAC Account"). You will not have the right to knowingly solicit, and/or provide any of the Approved Products and Services to, any ERA Threshold Account or ERAC Account, unless we authorize you to do so in writing once such an account has been referred to ERAC or us (as appropriate). As of the date of this Disclosure Document, an: (i) ERA Threshold Account is defined as any prospective or existing client that generates between $250 million and $1 billion in annual sales; and (ii) ERAC Account is defined as any prospective or existing client that generates $1 billion or more in annual sales. We may modify the definition of these kinds of accounts via the Manuals or otherwise in writing to yo
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–10)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, an ERAC Account is defined as a prospective or existing client that generates $1 billion or more in annual sales. Expense Reduction Analysts requires franchisees to refer these accounts to them or their affiliate ERAC.
This means that as a franchisee, you are not authorized to solicit or provide services to clients that meet this sales threshold without written authorization from Expense Reduction Analysts. The franchisor retains the right to manage these large accounts, potentially directing them to other franchisees, area representatives, or ERAC.
Expense Reduction Analysts may modify the definition of ERAC Accounts in the future via the manuals or in writing. It is important for prospective franchisees to understand these account classifications, as they directly impact the scope of clients they can pursue and service. Understanding the criteria for ERA Threshold Accounts (between $250 million and $1 billion in annual sales) is also important, as these accounts are also subject to franchisor approval.